Understanding India's Urban Area Definition

Urban Area: India’s Outdated Urban Area Definition and Its Impact

1. How does the Census currently define an ‘urban area’?

In the 2011 Census, an urban unit was either a statutory town (formally notified by the state and having a municipal body) or a census town (population above 5,000, with 75% male workforce in non-agriculture, and density above 400 per sq. km).

2. What are the limitations of this definition?

This definition ignores fast-changing rural-urban dynamics. Many settlements function as urban but lack official recognition. The 75% male workforce rule is outdated, as it excludes women’s informal work and ignores the rise of gig and service economy jobs in rural and peri-urban areas.

3. How does this affect governance and development?

When areas are labelled “rural” despite meeting urban criteria, they remain governed under panchayats instead of municipalities. This creates gaps in infrastructure, planning, and service delivery.

Example 1 – Census Towns in West Bengal: Hundreds of settlements classified as census towns in 2001 were still not converted into statutory towns by 2011. They lacked urban governance structures, leading to poor roads, drainage, and waste management.

Example 2 – Kerala’s Peri-urban Areas: Villages around Kochi and Thiruvananthapuram show dense populations with IT jobs, services, and gig work, yet remain under rural local bodies, delaying proper infrastructure support.

Example 3 – Industrial Villages in Gujarat: Many settlements near Surat and Rajkot function as industrial hubs with urban lifestyles, but since they are officially “rural,” they miss state funding for urban housing, sewage, and water supply.

Thus, while people live and work in urban conditions, governance structures fail to match their needs.

4. What evidence shows the scale of the problem?

Between 2001 and 2011, 251 settlements already identified as census towns in 2001 were still not recognized as statutory towns by 2011. West Bengal alone had hundreds of such settlements, delaying urban governance reforms.

5. What are the wider implications of continuing with the outdated criteria?

Millions will be misclassified as rural, urbanisation will be underestimated, and resource allocation will be distorted. Settlements with mixed livelihoods, high mobility, and dense populations will remain outside proper governance, weakening India’s ability to manage urbanisation effectively.